Small Business Restructuring
ATO Winding Up Application — Oppose or Resolve Before the Hearing
If the ATO has filed a winding up application against your company, you may have more options than you think — but the window to act is narrow. Paying the debt, entering a payment arrangement, appointing a voluntary administrator, or opposing the application on legal grounds can all stop a winding up order being made.
⚠ Once a winding up order is made by the court, it cannot be easily undone — act before the hearing date — submit your request now.
Does This Sound Like You?
Common situations we help with.
ATO has filed an application to wind up your company
You have received notice that the ATO has commenced winding up proceedings in the Federal Court of Australia, relying on a statutory demand that was not complied with. Your company is presumed insolvent, and the ATO is seeking a court order to wind up the company and appoint a liquidator. Urgent legal advice is needed immediately.
Court hearing date is set and approaching
The winding up application has been filed and you have been notified of the first return date before the Federal Court. You want to know what happens at that hearing, whether you need to appear, and what steps you should be taking between now and the hearing to protect the company.
Wanting to oppose the winding up application
You believe the winding up application should not succeed — either because the underlying debt is genuinely disputed, a payment arrangement has been agreed with the ATO, or you have entered voluntary administration. Opposing a winding up application requires filing a notice of appearance and, in some cases, affidavit evidence, all within strict court deadlines.
Paying or disputing the debt to have the application withdrawn
You have secured funding or resolved the dispute and want the ATO to withdraw the winding up application before the hearing. The ATO will generally withdraw if the full debt is paid, including its legal costs, or if a satisfactory payment arrangement is put in place. A lawyer can negotiate the withdrawal terms and obtain confirmation in writing before the hearing date.
Seeking an urgent adjournment to stop the winding up
You need more time to pay the debt, complete a restructure, or appoint a voluntary administrator, and you want the court to adjourn the winding up application. Courts do have a discretion to adjourn proceedings, but the application must be supported by evidence of a genuine plan and a realistic prospect of resolution, and the ATO must have notice.
Liquidator has been appointed — understanding your next steps
A winding up order has been made and a liquidator appointed. You need to understand your obligations as a director — including cooperating with the liquidator, providing books and records, and attending examinations — and your personal liability exposure. Understanding these obligations clearly from the outset can significantly reduce your risk.
How It Works
Urgent help opposing or resolving ATO winding up proceedings
Once the ATO files a winding up application, the window to act is short. Submit your request and we will connect you with a specialist insolvency and Federal Court lawyer who can advise and act before your hearing date.
Submit Your Winding Up RequestSubmit your request
Tell us the court, the hearing date, the debt amount, and whether you are seeking to pay, negotiate, or oppose the application.
Get matched urgently
We connect you with an insolvency specialist experienced in Federal Court winding up proceedings and ATO negotiations.
Act before the hearing
Your lawyer will advise on the best strategy, file the necessary court documents, negotiate with the ATO, and appear at the hearing if required.
Urgent
Same-day consultations available for companies facing imminent Federal Court winding up hearings
All 8 States
Requests matched to specialist lawyers across every state and territory in Australia
Free
Initial consultation — understand your rights and options before committing to any action
Federal Court
Our lawyers appear regularly in Federal Court winding up proceedings and know exactly what is required
Before the Hearing Date
Practical questions about ATO winding up applications.
How does an ATO winding up application proceed in the Federal Court? +
The ATO files an originating process in the Federal Court of Australia and serves it on the company at its registered address. The application is listed for a first return date, typically about 21 days after filing. At the first return, the court will adjourn the matter for a hearing date if the company intends to oppose, or make a winding up order if the company fails to appear or has not resolved the debt. The ATO must advertise the application in the Australian Financial Review, which triggers a period within which other creditors can seek to be heard.
What are the grounds to oppose an ATO winding up application? +
A company can oppose a winding up application on several grounds. Where the underlying statutory demand debt is genuinely disputed, the company may argue that the presumption of insolvency should not arise. A company that is actually solvent — able to pay all its debts as they fall due — can defeat the application by proving solvency by evidence. Courts also have a discretion to dismiss or adjourn winding up applications where the debt has been paid, a payment arrangement accepted by the ATO is in place, or the company has entered voluntary administration and a DOCA is proposed.
How do I apply for an urgent adjournment of the winding up hearing? +
An adjournment application must be made to the Federal Court at or before the hearing. Courts will grant an adjournment where there is a genuine prospect of the debt being paid or the company restructured, and where the interests of creditors are not prejudiced by delay. The application should be supported by affidavit evidence outlining the current financial position, what steps are being taken to resolve the debt, and the likely timeframe for resolution. The ATO should be notified before the hearing and, where possible, consent to the adjournment should be sought.
If I pay the debt after the application is filed, will it be withdrawn? +
Generally yes — the ATO will withdraw a winding up application if the full debt, including accumulated interest and the ATO's legal costs of the proceedings, is paid before the final hearing. Payment of the debt alone does not automatically cause the proceedings to be discontinued; the ATO must file a notice of discontinuance with the court. Your lawyer can negotiate the withdrawal conditions, confirm the total amount payable, and ensure the discontinuance is filed promptly so the proceedings are formally concluded.
What happens to the company if a winding up order is made? +
Once a winding up order is made, a liquidator is appointed and the company ceases to trade in the ordinary course of business. The liquidator takes control of the company's assets, investigates its affairs, realises assets for the benefit of creditors, and ultimately deregisters the company. Directors lose their authority to act on behalf of the company. The liquidator may also investigate director conduct, including potential insolvent trading or uncommercial transactions, and bring recovery proceedings against directors personally if appropriate.
What is a director's position once a liquidator is appointed? +
Once a winding up order is made and a liquidator appointed, directors must cooperate fully with the liquidator. This includes providing access to books and records, attending examinations under the Corporations Act (including public examinations under Part 5.9), and answering the liquidator's questions honestly. Directors who fail to cooperate can be held in contempt of court. Directors also face potential personal liability for insolvent trading, Director Penalty Notices from the ATO, and ASIC disqualification proceedings if serious misconduct is identified during the liquidation.
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